Are you better off using a broker to get a mortgage or going it alone?
There are many ways to access your financial products and sometimes the easiest route is to open an account direct with the provider. If you want a savings account for example you can easily find the best rate using a comparison web-site, and apply for a product online or over the phone without involving a middleman.
Most of us are comfortable opening simple and straightforward accounts or products like savings or car insurance without taking advice. But when it comes to taking out a mortgage it's a different matter for many of us.
Some of us want a bit more reassurance when it comes to arranging the biggest financial commitment of our lives, and a mortgage broker can give you invaluable guidance -- saving you time, hassle and money.
Here are 10 great reasons to go for a broker!
1 Proper advice
Brokers need to pass professional mortgage qualifications, plus they must be regulated by the Financial Services Authority. They will give you 'full advice' meaning that they will search the market and tell you which product they believe is right for your needs and circumstances. Lenders do not always offer this full advice, instead, they often provide 'information only' on their own products. Staff will ask you set questions from a list to come up with suitable deals from the lender's range, and are often not experts in mortgages. This is fine for borrowers who know what they do and don't want. But many of us require full advice from an expert, tailored to our needs -- for this a broker is essential.
2. Making a complaint
Hopefully you will never have to make a complaint about your mortgage, wherever you get it from. However, things do go wrong and complaints sometimes need to be made. If you receive full advice, from a mortgage broker for example, you have access to the Financial Ombudsman Service who can look into the advice you were given and order redress or compensation if appropriate. If you receive 'information only' from a high street bank you don't have the same comeback if you later believe the product you took to have been inappropriate for your needs. Note that some lenders do also offer 'full advice'.
3. Access to a wide range of deals
A mortgage broker will scour the market for the right deal for you, searching the productsranges of many lenders. This includes some 'broker-only' lenders that consumers simply cannot access direct. If you go to a mortgage lender they will look through their own products only, so you would be very lucky indeed if the best deal for you happened to be from the first lender you visited.
4. What about direct deals?
Some mortgage lenders do not operate through brokers and only sell their products direct to consumers -- such as HSBC. And sometimes these lenders have very competitive deals on offer. But a good mortgage broker will tell you if the best option for you is to go to a direct-only provider. They also have an in-depth knowledge of lenders' criteria and it might be that a deal that looks great on paper is only available to a select few borrowers. If this is the case they will look for alternative deal that is open to you.
5. Unusual needs
A client with unusual needs or circumstances can often only be provided for by going through the intermediary channel. Many lenders that operate in specialist markets, such as the buy-to-let market, or simply do not operate direct to consumers. If your needs are out of the ordinary a broker could help you to access a deal that you would not be able to find on the high street.
6. Advice on your terms
Mortgage advisers understand that people cannot always take a day off work to discuss their homeloan. Your bank branch may close at 5pm sharp but your broker will work into the evening and weekends, coming to see you at your convenience in your home or workplace. Or they will arrange the deal over the phone or email tosuit your preferences. Brokers want your business and will go the extra mile to get it.
7. Fewer delays
Your mortgage could go through more quickly with a broker than if you deal direct with a lender. Brokers have experience of working with lenders and know how to 'package' your application so it goes through first time, with no delays or going back and forth for 'missing information'. They can also speak directly to the people who make the lending decisions so can iron out any queries for you. Put simply, you will get higher service standards than if you were acting alone.
8 Holistic advice
A mortgage adviser often specialises in other areas of personal finance and can therefore look at your wider financial situation, not just your mortgage. When it comes to insurance, a broker can tell you what you really need to take out and find the best deal for you from the whole market -- brokers also have to be fully regulated to advise on insurance, so they know their stuff here too!
9 Long-term relationship
Ultimately a mortgage broker is loyal to you, their client. They know that the best way to keep hold of your business is to offer you a fantastic service, which means giving you the best advice possible and getting you a great mortgage. A happy client will not only stay, they will recommend their adviser to family and friends. So if a better deal comes along, a broker will contact you to explain how you can switch and save money.
A lender you visit on the high street will certainly not inform you if you could get a better deal elsewhere.
10. On the phone and face to face
Leggett & Coare on hand to help you get the best mortgage for your needs. Our qualified advisers are Appointed Representatives of Mortgage Intelligence who are regulated by the Financial Services Authority. With collectively over40yrs experience they know their onions, and have access to a huge range of mortgages from across the market. You will get access to a dedicated Adviser that you can contact directly, and who will keep you fully updated on your application. So if you want to benefit from tailored, personal and expert mortgage advice, simplyCall Leggett & Co on 01202 553791and let us arrange your mortgage for you.
Julian Errington CeMAP Senior Mortage and Insurance Protection Adviser
Your home may be repossessed if you do not keep up repayments on your mortgage
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